A study on distribution network model determinants

Pao Yue-kong Library Electronic Theses Database

A study on distribution network model determinants

 

Author: Reinderink, Jurgen C
Title: A study on distribution network model determinants
Degree: M.Sc.
Year: 2010
Subject: Hong Kong Polytechnic University -- Dissertations
Business logistics -- China -- Case studies
Inventory control -- Decision making -- China -- Case studies
Clothing trade -- China -- Case studies
Department: Graduate School of Business
Pages: vii, 65 leaves : ill. ; 31 cm.
InnoPac Record: http://library.polyu.edu.hk/record=b2392253
URI: http://theses.lib.polyu.edu.hk/handle/200/5825
Abstract: Corporations make strategic level decisions to manage uncertainty, customer service and cost management, in supply chains, to be successful in the global competitive market. Physical distribution has continuously been a significant part of business logistics, as the efficient movement of finished products, from factory to consumer market-place, remains an essential element of corporate logistics strategy. When corporations operate within different markets, they deal with identical product characteristics, having different operational requirements and demand variables. As different consumer market-places relate to different influences on strategic level decisions, it becomes essential to analyze individual specifications of consumer market-places, in which corporations operate. This research explores the determinants of the strategic level decision regarding the necessity of inventory centralization or decentralization in the distribution network models of sports-apparel finished products within the Peoples' Republic of China. First degree determinants and measurable second degree determinants are based on product characteristics, operational requirements and demand variables, and defined by the strategic level decision of inventory centralization or decentralization. Those determinants are outlined in a focus group with Chinese industry leaders and professionals. Several relevant second degree determinants are included in the research, particular those proposed in the focus group. The determinants are added into the analytic hierarchy process structure, following an individual examination of each of the three sports-apparel corporations interviewed in the Peoples’ Republic of China. Findings of the analytic hierarchy process reveal different determinant priorities for each corporation, the first being inventory turnover and demand anticipation. The interview results classify two centralized and one decentralized distribution network model in the sports-apparel industry. The research concludes that in the People’s Republic of China there are potential relationships between determinant priorities and the inventory centralization or decentralization decision in sports-apparel corporations. The relationship is identified through a comparison of literature findings to sports-apparel corporate case-studies. Inventory centralization is driven by high inventory turnover rates, verified by the highest determinant priority of inventory turnover in the existing centralized distribution network model. Inventory decentralized is driven by high reactivity to consumer market-place demand, confirmed by the highest determinant priority of demand anticipation in the existing decentralized distribution network model.

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